Responsibility

Overview

At Alio Gold, we take pride in delivering positive impacts within and outside our company. Guided by our corporate values, we aim to manage our impacts ethically, ensuring that our San Francisco Mine, Florida Canyon Mine and Ana Paula Project build legacies of social responsibility, profitability and environmental stewardship.

Four priorities drive our approach to responsible mining: Our People, Health and Safety, Community, and Environment. By promoting various initiatives in these areas, we ensure returns for our diverse stakeholders: the employees, investors and community members who make our business possible and grant us our social licence to operate. Their well-being, along with the well-being of the environment, fuels our growth.

We understand that mining is a complex industry – one that faces challenges as well as opportunities. By operating responsibly, we create long-term value for our stakeholders and strengthen our host communities.

The Driving Force

Working at Alio Gold is about more than employment. It’s about fostering mutually beneficial partnerships that empower individuals and their communities. We work hard to create safe, inclusive environments where people can grow, thrive and return home each day feeling valued.

Embracing local cultures is essential to building a vibrant workforce. One of the ways we support the economic strength of our host communities is by hiring local talent. At our assets in Mexico around 90% of our employees come from the host country, many of them from Sonora and Guerrero. This strong bond with our neighbours instills a sense of pride in our employees and furthers the longevity of our operations.

Diversity is also crucial to success. In this traditionally male-dominated industry, we recognize the value of attracting women to our team and working to retain them. Different perspectives and experiences fuel growth and innovation, and we are committed to drawing on the largest talent pool available. That is why we continually expand our recruitment efforts with local residents, encouraging female candidates to join the global contingent of women in mining.

Partnering with diverse cultures, respecting local customs and embracing new ideas – this is how we support our people and create value at Alio Gold.

Our stakeholders. Our priority

Greater safety on the job also means greater safety for the community. Alio Gold’s strong safety culture begins with awareness and education. From senior leaders to haul truck operators, all of our employees receive comprehensive training. We encourage them to challenge unsafe behaviour and champion best practices – at work and at home.

At every level of the organization, in all areas of our operations, we make safety our responsibility.

Long-term trust builds long-term value

We believe that how we listen is as important as how we deliver. The mining industry is a dynamic space, one that requires long-term trust built on collaboration. Through engagement, we aim to understand the wants and needs of our local stakeholders – defining, managing and meeting expectations.

Social responsibility starts with ears on the ground. Taking time to hear concerns and conduct meaningful discussion guides our community approach. Our government partnerships, for example, extend to the municipal, provincial and federal levels. With these stakeholders, we set benchmarks to serve as an example for our industry peers.

Through programs, workshops and constructive conversation, we bolster stakeholder legitimacy and, in turn, strengthen the local communities in which we operate.

Reducing impacts for a lasting legacy

The production of precious metals is resource intensive, and minimizing our impacts is a key cornerstone of our long-term goals. Managing environmental factors today supports a positive environmental legacy for the future, and that means practising environmental stewardship.

Meeting and exceeding government regulations, the proactive protection of flora and fauna, responsible water management – these and other initiatives add value to communities and ensure healthy environments in which to work, live and grow.

Our environmental stewardship is defined by continuous improvement. This means applying new and emerging technologies to increase operating efficiencies and minimize our footprint. It also entails monitoring our performance across the Company. Most of all, it demands a sustained effort from everyone at Alio Gold.

Certifications

The San Francisco Mine was recognised as a Socially Responsible Company by the Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility in Mexico (AliaRSE), for the sixth consecutive year (2013-2018).

Reports

Extractive Sector Transparency Measures Act Report

On June 1, 2015, the Extractive Sector Transparency Measures Act (ESTMA) was enacted to contribute to the global efforts of increasing transparency and deterring corruption. ESTMA requires extractive entities to report specific payments made to governments in Canada and abroad related to the commercial development of oil, natural gas or minerals. Alio Gold annually discloses these payments made on a country and project basis in our ESTMA report.

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Non-GAAP Information

In addition to disclosing results determined in accordance with GAAP, Alio also discloses certain non-GAAP results of operations. The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP. Management believes that this non-GAAP information provides investors with additional information to assess Alio’s operating performance and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.